Rhodri Morgan has confirmed that coalition government is an "option" in order to establish political stability in the National Assembly for Wales.

The acting first secretary has been holding cross-party talks to avoid further "nuclear bombs" rocking the devolved body.

"It [coalition] is an option as a means to an end," he said.

"The end is political stability. We have got to find common ground between the parties," he said.

It was a slight change of pace from earlier on in the day when he stressed he was "ruling nothing in, or out".

"But we are very well aware of the Scottish Parliament situation, because with 28 of the 60 seats we, too, are in a minority".

Mr Morgan said he intended to speak to all three opposition parties to discuss the way forward and achieve a more inclusive style of politics in the Assembly to get a better deal for Wales.

"All 60 of us here realise that we have got to make this Assembly work," he added.

'Nuclear bomb'

No-one, he added, wanted to see the Assembly undermined by more votes of no confidence, which he likened to "putting a nuclear bomb under the administration".

If he is elected to become permanent first secretary, he said his priority would be to make the Assembly "more popular, more accessible, and more capable of delivering better services to the people of Wales".

Mr Morgan declared that an "Operation Phoenix" was needed to win back disaffected Labour voters in Wales and revitalise the party following its disappointing showing in last year's Assembly elections.

In a telephone conversation with Tony Blair, he assured the prime minister that he would have "very good relations" if confirmed as first secretary next week.

But Mr Morgan refused to be drawn on whether he would find a place for Mr Michael in his Welsh cabinet, or even recall the former Welsh Secretary Ron Davies.